The tough times may not be over for the housing market in 2008 unless demand picks up dramatically. That's not expected to happen until the openings of resorts in 2009 attract workers to Las Vegas.

"I think it is going to be some tough going," said Ken Perlman, a housing analyst with Sullivan Real Estate Advisors of San Diego. "It is going to be another year of recovery. The housing industry has some work to get back on track."

The end of 2007 was welcomed by builders and those selling their homes. Buyers had some the best bargains in years.

The median price of new homes fell from a high of $355,435 in April 2006 to less than $300,000 by the end of 2007. The median price of existing homes reached $290,000 in 2006, but fell to less than $260,000 by the end of 2007 — the lowest prices have been since January 2005.

Many expect new-home and existing-home prices to continue to fall, at least in the early part of this year.

The record level of inventory on the market has shown no signs of falling, and the number of homes could grow because a large number of loans are expected to reset in the first half of 2008. That will cause payments to rise and could force some into foreclosure despite a plan by President Bush to freeze adjustable rate mortgages.

"I think the president's initiative will have minimal effect on the Southern Nevada housing market," said Jeremy Aguero, a principal with Applied Analysis, which tracks the housing market. "It is not broad enough in its reach. It is for people who only had subprime loans and only for those folks who missed a payment."

The demand for homes in Las Vegas might be hurt by the continuation of the credit crunch that is forcing buyers to have a larger down payment and proof of income, which wasn't required previously.

The hope of some analysts is that inventory starts declining by the end of 2008 and that prices will at least stabilize.

Aguero said that although he expects the first half to be weak and prices to continue to fall, there might be signs of a recovery by the end of the year.

One analyst, Steve Bottfeld, executive vice president of Marketing Solutions, said he expects the market will start to turn by the second quarter and suggests prices will increase by the end of the year.

"I think it is going to be a rough first quarter, and then we are going to get our feet back on high ground," Bottfeld said.

Las Vegas housing guru Richard Lee, first vice president of First American Title, predicted the decline in 2007 when a year ago he said prices could fall as much as 15 percent. Lee said prices will continue to fall in 2008, but doesn't have an amount.

"I think it is good to be in Las Vegas, if you can survive 2008," Lee said. "Nobody has a comfort level that it is going to be any better in 2008 and some people think 2009. I just don't know. It has me perplexed."

Once buyers realize the bargains that can be had, that will spur activity, but there is a problem of who will qualify to buy because of the tighter lending standards, Lee said.

"There is an opportunity for those in a cash position with a high (credit) score can take advantage of the marketplace," Lee said. "This is the first time in four to five years that people can find an affordable house."

It's getting to the point where there will be opportunities to purchase homes and rent them and possibly break even, Lee said. That hasn't been the case in recent years.

Lee also suggested there will be a greater presence from foreign investors looking for bargains because of the decline in the dollar's value.